Tenterden leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Tenterden will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Tenterden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Two years ago David, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Tenterden. Having bought his home two decades ago, the unexpired term was of no concern. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. David was able to extend his lease just under the wire in April. David and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If he had missed the deadline, the premium would have gone up by a minimum £1,075.
Ms P Williams was assigned a lease of a one bedroom apartment in Tenterden in October 2001. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Identical flats in Tenterden with a long lease were valued around £264,000. The average amount of ground rent was £60 collected yearly. The lease terminated on 14 January 2078. Considering the 53 years left we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 plus fees.
Mrs V Peterson owned a first floor apartment in Tenterden in August 1999. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Identical homes in Tenterden with 100 year plus lease were in the region of £225,400. The mid-range ground rent payable was £45 invoiced yearly. The lease expired in 2089. Considering the 64 years remaining we calculated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of expenses.